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(a) 12.87/90.09 Your answer is partially correct. Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places e.g. 5,275.) CRANE COMPANY (Lessee) Date Annual Lease Payment Plus GRV 1/1/25 $ esc 1/1/25 1/1/26 Lease Amortization Schedule Interest on Liability Reduction of Lease Liability 0 $ 125.377 125,377 1/1/27 125,377 0 0 $ 125,377 Lease Liability 660,000 534,623 40,302.40 85,074.60 33,496 91,881 326,824.40 1/1/28 125,377 26.146 1/1/29 125,372 18,207.47 · 1/1/30 125,377 12/31/30 5,000 99,231 227,593.40 107,169.53 9,634 115,743 374.47 $ 757,262 $ 128,160.34 eTextbook and Media List of Accounts 1 Q a # $ @ 2 3 4 % 9105 0 624,476.13 120,423.87 MacBook Pro 66 & 4,680.87 7 W E R T Y U * 8 ~9 - 0 0 יו P SUPP Current Attempt in Progress The following facts pertain to a non-cancelable lease agreement between Cullumber Leasing Company and Crane Company, a lessee. Commencement date Annual lease payment due at the beginning of each year, beginning with January 1, 2025 January 1, 2025 $125,377 Residual value of equipment at end of lease term, guaranteed by the lessee $54,000 Expected residual value of equipment at end of lease term $49,000 Lease term 6 years Economic life of leased equipment 6 years Fair value of asset at January 1, 2025 $660,000 Lessor's implicit rate 8 % Lessee's incremental borrowing rate 8 % The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment. Click here to view factor tables. (a) Your answer is partially correct. Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.2 CRANE COMPANY (Lessee) MacBook Bie

(a) 12.87/90.09 Your answer is partially correct. Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places e.g. 5,275.) CRANE COMPANY (Lessee) Date Annual Lease Payment Plus GRV 1/1/25 $ esc 1/1/25 1/1/26 Lease Amortization Schedule Interest on Liability Reduction of Lease Liability 0 $ 125.377 125,377 1/1/27 125,377 0 0 $ 125,377 Lease Liability 660,000 534,623 40,302.40 85,074.60 33,496 91,881 326,824.40 1/1/28 125,377 26.146 1/1/29 125,372 18,207.47 · 1/1/30 125,377 12/31/30 5,000 99,231 227,593.40 107,169.53 9,634 115,743 374.47 $ 757,262 $ 128,160.34 eTextbook and Media List of Accounts 1 Q a # $ @ 2 3 4 % 9105 0 624,476.13 120,423.87 MacBook Pro 66 & 4,680.87 7 W E R T Y U * 8 ~9 - 0 0 יו P SUPP Current Attempt in Progress The following facts pertain to a non-cancelable lease agreement between Cullumber Leasing Company and Crane Company, a lessee. Commencement date Annual lease payment due at the beginning of each year, beginning with January 1, 2025 January 1, 2025 $125,377 Residual value of equipment at end of lease term, guaranteed by the lessee $54,000 Expected residual value of equipment at end of lease term $49,000 Lease term 6 years Economic life of leased equipment 6 years Fair value of asset at January 1, 2025 $660,000 Lessor's implicit rate 8 % Lessee's incremental borrowing rate 8 % The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment. Click here to view factor tables. (a) Your answer is partially correct. Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.2 CRANE COMPANY (Lessee) MacBook Bie

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(a) 12.87/90.09 Your answer is partially correct. Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places e.g. 5,275.) CRANE COMPANY (Lessee) Date Annual Lease Payment Plus GRV 1/1/25 $ esc 1/1/25 1/1/26 Lease Amortization Schedule Interest on Liability Reduction of Lease Liability 0 $ 125.377 125,377 1/1/27 125,377 0 0 $ 125,377 Lease Liability 660,000 534,623 40,302.40 85,074.60 33,496 91,881 326,824.40 1/1/28 125,377 26.146 1/1/29 125,372 18,207.47 · 1/1/30 125,377 12/31/30 5,000 99,231 227,593.40 107,169.53 9,634 115,743 374.47 $ 757,262 $ 128,160.34 eTextbook and Media List of Accounts 1 Q a # $ @ 2 3 4 % 9105 0 624,476.13 120,423.87 MacBook Pro 66 & 4,680.87 7 W E R T Y U * 8 ~9 - 0 0 יו P SUPP
Transcribed Image Text:(a) 12.87/90.09 Your answer is partially correct. Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places e.g. 5,275.) CRANE COMPANY (Lessee) Date Annual Lease Payment Plus GRV 1/1/25 $ esc 1/1/25 1/1/26 Lease Amortization Schedule Interest on Liability Reduction of Lease Liability 0 $ 125.377 125,377 1/1/27 125,377 0 0 $ 125,377 Lease Liability 660,000 534,623 40,302.40 85,074.60 33,496 91,881 326,824.40 1/1/28 125,377 26.146 1/1/29 125,372 18,207.47 · 1/1/30 125,377 12/31/30 5,000 99,231 227,593.40 107,169.53 9,634 115,743 374.47 $ 757,262 $ 128,160.34 eTextbook and Media List of Accounts 1 Q a # $ @ 2 3 4 % 9105 0 624,476.13 120,423.87 MacBook Pro 66 & 4,680.87 7 W E R T Y U * 8 ~9 - 0 0 יו P SUPP
Current Attempt in Progress The following facts pertain to a non-cancelable lease agreement between Cullumber Leasing Company and Crane Company, a lessee. Commencement date Annual lease payment due at the beginning of each year, beginning with January 1, 2025 January 1, 2025 $125,377 Residual value of equipment at end of lease term, guaranteed by the lessee $54,000 Expected residual value of equipment at end of lease term $49,000 Lease term 6 years Economic life of leased equipment 6 years Fair value of asset at January 1, 2025 $660,000 Lessor's implicit rate 8 % Lessee's incremental borrowing rate 8 % The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment. Click here to view factor tables. (a) Your answer is partially correct. Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.2 CRANE COMPANY (Lessee) MacBook Bie
Transcribed Image Text:Current Attempt in Progress The following facts pertain to a non-cancelable lease agreement between Cullumber Leasing Company and Crane Company, a lessee. Commencement date Annual lease payment due at the beginning of each year, beginning with January 1, 2025 January 1, 2025 $125,377 Residual value of equipment at end of lease term, guaranteed by the lessee $54,000 Expected residual value of equipment at end of lease term $49,000 Lease term 6 years Economic life of leased equipment 6 years Fair value of asset at January 1, 2025 $660,000 Lessor's implicit rate 8 % Lessee's incremental borrowing rate 8 % The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment. Click here to view factor tables. (a) Your answer is partially correct. Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.2 CRANE COMPANY (Lessee) MacBook Bie
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